PBA HOLDINGS BHD: ABOVE AVERAGE PERFORMANCE AND AWAITING APPROVAL FOR TARIFF REVIEW(e/c)

PENANG, 26/6/2014: PBA HOLDINGS BHD (Stock reference: PBA – 5041) has reported an operational profit for the 12th consecutive year and is awaiting approval for a proposed water tariff review in Penang.

Today, the company’s annual general meeting approved a final single-tier dividend of 4%, rounding up the total dividend pay out to 7.5% for the year.

In 2013, the key performance indicators (KPIs) of its 100% owned subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP), were well above average compared to national statistics reported in the Malaysia Water Industry Guide 2013:

(1)Supply Coverage: PBAPP’s percentage of urban population served is 100% as compared to the national average of 96.9%. Meanwhile, the percentage of rural population served in Penang was 99.7% as compared to the national average of 90.7%.
(2)Operational Efficiency: PBAPP’s average number of connections per employee is 451, or 27% above the national average of 354.
(3)Water Loss Management: Penang’s NRW percentage in 2013 was 18.2%, or half the national average of 36.4%.
(4)Tariff Ranking: PBAPP’s average domestic tariff for the first 35,000 litres per month was RM0.31, the lowest in the country. Moreover, its average trade tariff for the first 500,000 litres per month was RM1.19, as compared to the national average of RM1.45.
(5)Profitability: PBAHB tabled a profit after tax of RM27.93 million in 2013. Meanwhile, Malaysia’s total national deficit, or loss, from water operations was RM380 million in 2012.

Accordingly, on 21st November 2013, PBAPP received the inaugural ‘Water Supply Operator of the Year’ award as well as the ‘Efficiency Award’ from the Ministry of Energy, Green Technology and Water, or KeTTHA.
Meanwhile, PBAPP is awaiting approval from the National Water Services Commission (SPAN) for a review proposal submitted on 30th April 2014.

PBAHB Chairman Y.A.B. Tuan Lim Guan Eng who also serves as Chief Minister of Penang, reiterated that the primary objective of the review was to avoid water rationing at all costs. The review, he said, was a demand management initiative that would help by cutting down water consumption and wastage of excessive water resources caused by low water tariffs that resulted in Penang recording the highest water consumption in Malaysia. It would also assist the Penang State Government to secure the Federal Government’s approval for the commencement of the Sungai Perak Raw Water Transfer Scheme that will guarantee water sufficiency for Penang until 2050 by showing that Penang State Government is serious about taking concrete steps to reduce the highest water consumption in Malaysia.

“This is the first increase in domestic water tariff since 1993. The minimum charge for domestic water supply and the tariffs for consumption of up to 40 cu.m. was last reviewed in 1993. Domestic tariffs for consumption of more than 40 cu.m. per month was last reviewed in 2001. We do not wish to speculate on the amount of additional revenue because we are still awaiting official word from SPAN. Moreover, this amount will be subject to the date of implementation and customer response,” he added.

Y.A.B. Lim, who also serves as Chief Minister of Penang, said the additional revenue from the proposed tariff review would be used to finance critical water supply infrastructure projects, as well as a water-saving culture and sustainable water supply management in Penang.

“In 2013, we saw a 1.5% increase in registered water consumption in Penang year-on-year, from 290.6 billion litres in 2012 to 295.1 billion litres in 2013,” he said.

“Domestic consumption accounted for 59.5% of total consumption, with the remaining 40.5% being trade consumption. It should be noted that Penang’s average per capita consumption was 311 litres per capita per day (l/c/d) in March 2014, during the height of the ‘water rationing’ season, as compared to the national average of 212 l/c/d,” he said.

“With PBAPP’s good supply management, we managed to avoid water rationing in Penang from January to April 2014. Nevertheless, forced rationing in Kuala Lumpur, Putrajaya and Selangor, as well as in districts within Perak, Negeri Sembilan and Johor, have reinforced the need and urgency to reduce domestic water wastage in Penang so as to mitigate future risks,” he added.

Based on PBAPP’s business model, domestic consumption for up to 35,000 litres per month is subsidised for the benefit of households. In 2013, the total subsidy for domestic consumption amounted to RM67.5 million.
Under the tariff review proposal submitted to SPAN (please see “Appendix A”), the tariff for the first 20,000 litres of domestic consumption per month will not change, while the tariff for more than 20,000 litres – 40,000 litres have been reviewed to increase by only 9.5%. With minimal adjustments at the lowest bands of domestic consumption, Penang will still retain the lowest average tariffs at RM0.32 per 1,000 litres for the first 35,000 litres per month in Malaysia. The national average is RM0.66 per 1,000 litres (please refer to “Appendix B”).

Beyond 35,000 liters per month, a RM0.48 per 1,000 litres water conservation surcharge (WCS) is applicable. However, PBAPP offers a 60% discount on the WCS to families of 8 persons or more.

Trade consumers are not subject to the WCS but will pay an average of 18.8% more per 1,000 litres. Penang’s average tariff for the first 500,000 litres of trade consumption will still be the lowest amongst industrialised states, and dips below the national average of RM1.45 per 1,000 litres. Meanwhile, the charges for temporary supply, mainly for construction applications, and shipping will be increased by 97.4% and 66.5% respectively (please refer to “Appendix C”).

Y.A.B. Lim said the 2014 tariff review was aimed at ensuring that all PBAPP customers would continue to enjoy 100% urban and 99.7% rural supply coverage in the immediate future. During the year in review, PBAPP’s customer base grew by 2.4%, from 533,916 to 546,749 registered water consumers in 2013.

“With continuing growth in our customer base, we need to cut down on domestic water wastage. This will help us to avoid water rationing and ensure sufficiency for Penang’s on-going economic growth,” Y.A.B. Lim said.

The Chief Minister pointed out that Penang was currently one of the top three tourist destinations in Malaysia as well as many investors’ location of choice.

“Penang recorded a 33.4% increase in domestic airport arrivals and an 8.2% increase in foreign arrivals for the first two months of 2014, as compared to the corresponding period last year. Penang is also the top foreign direct investment (FDI) state, accounting for RM19.7 billion in FDI, or about 20% of the total FDI recorded in Malaysia, in the period from January 2010 to August 2013,” Y.A.B. Lim said.

While supporting the continued growth of the manufacturing and tourism sectors, the State Government is also promoting the growth of the shared services sector through the development of a RM3.3 billion Business Process Outsourcing and Information Technology Outsourcing (BPO-ITO) hub that will create tens of thousands of new jobs. The hub will comprise 74 acres of an IT-BPO Park in Bayan Lepas, the planned development of 7 acres of BPO Prime Centre in Bayan Baru and 100,000 sq. ft. of Creation Animation Triggers (CAT) in the George Town heritage enclave.

“Due to good management, continuous water supply is taken for granted in Penang. However, it is a fundamental requirement for Penang’s continued well-being today, and its prospects for the future,” Y.A.B. Lim said. “As such, PBAPP will continue to manage water supply responsibly to avoid water rationing at all costs.”

—–Mandarin Version —–

槟州供水机构(PBAPP):表现中上水平,等待水价调整批准

槟城26日讯:槟州供水机构 (Stock reference: PBA – 5041) 连续第12年获得营运利润,目前正针对水费上调等待批准。

今天 ,在公司常年大会上,批准了4%单层股息,因此全年的股息一共7.5%。

根据2013年马来西亚水工业指南的统计,其100%拥有的子公司槟州供水有限公司关键表现指标也在全国平均水平之上。

(1)供水覆盖率: 槟州供水机构在城市地区的覆盖率达100%,全国平均为96.9%。至于乡区供水覆盖率为99.7%,全国平均为90.7%.

(2)营运效率: 槟州供水机构平均每一名雇员的联系达451人,比全国平均354人高出 27%。

(3)流失水管理: 槟城2013年无收益水为18.2%,或是全国36.4%的一半而已。

(4)水费排名: 槟州供水机构的家庭用水首3万5000公升收费仅31仙,是全国水费最低的州属。商用水费为首50万公升为1令吉19仙,比全国平均收费1令吉45仙还低。

(5)利润: 槟州供水机构在2013年的税后盈利为2793万令吉。同时,马来西亚在2012年水营运方面赤字或亏损达3亿8000万令吉。

在2013年11月21日,槟州供水机构获得能源、绿色科技及水务部的颁发的“年度供水业者大奖”以及“效率奖”。

与此同时,槟州供水机构也已经在2014年4月30日提呈调整水价的建议书,目前正等待国家水务管理理事会(SPAN)的批准。

槟州供水机构主席林冠英也是槟州首席部长,他重申,调整水价是一项避免配水问题的努力。这是一项水需求管理的措施,将减少因水价过低而造成的用水过多及水源浪费,槟城已经成为全马用水量最高的州属。这也将有效协助槟州政府保住联邦政府的协议,即启动霹雳河生水转移计划,以确保直至2050年,槟城供水依然充足,也证明槟州政府是认真采取行动,以改善槟州用水量全国最高的情况。

“这是1993年以来第一次调高家庭用水价格。最后一次针对家庭用水少于40立方公尺用水最低收费的检讨在1993年。而针对家庭用水多过40立方公尺最低收费的检讨在2001年。我们不希望针对额外的收入做出推测,因为我们还在等待国家水务管理理事会的批准。再说,这笔数目取决于几时执行以及用户的反应。”

林冠英也说,水价调整所获的额外收入,将会被用来资助供水的基础设施,以及促进槟州节水文化及可持续供水管理。

“2013年,注册用户的用水量比2012年2906亿公升高出1.5%,达2951公升。”

“家庭用水量占了总用水量的59.5%,其它40.5%为商业用水。值得注意的是,槟城在2014年3月配水季节,人均每日用水达311公升,比全国212公升还高。”

“有鉴于槟州供水机构的良好管理,我们才能避免在1月至4月期间进行配水。但是,吉隆坡、布坡、雪州、霹雳某些县属、森州及柔佛州的强制配水,也让我们感到有必要立即减少家庭用水量,以应付未来缺水的风险。”

根据槟州供水机构的商业模式,我们津贴家庭用水每个月首3万5000公升。在2013年,我们总共津贴了6750万令吉。

在我们提呈给国家水务管理理事会的水价调整建议书中(附录1),家庭用水每个月首2万公升的水价不变,用水2万公升至4万公升之间的水价仅上涨9.5%。我们在家庭用水着手进行最小限度的调整后,槟州的水费依然是全国最低,即每个月首3万5000公升的水价为每1000公升32仙。全国平均水价为每1000公升66仙。(附录2)

每月用水超过3万5000公升,则以每1000公升48仙计(水源保护附加费)。但是,槟州供水机构将给予家庭成员8人或以上的用户60%水源保护附加费折扣。

商业用户不受水源保护附加费影响,但是他们的每1000公升水费将增加18.8%。槟州商业用水首50万公升的水价还是众多工业化州属最低者,比起全国平均水价每1000公升1令吉45仙还低。目前,针对临时供应(以建筑应用为主)及船运业的水费将分别增加97.4%及66.5%(附录C)

林冠英说,2014年水费调高的目的是要确保所有槟州供水机构的用户,不论城市或乡区,都能继续享用100%及99.7%的供水覆盖率。在年度检讨时,槟州供水机构的用户增加了2.4%,从2013年的53万3916户,增加至54万6749户。

“随着用水户不断增加,我们需要减少家庭用水的浪费。这将有助于让我们避免配水,以及确保槟城在经济持续成长中的供水效率。”

首长也指出,槟城目前是我国三大游客首选地之一,也是许多投资者的首选地。

“2014年首两个月比起去年同时期,槟城机场的国内游客人次增加了33.4%,外国游客人次增加了8.2%。槟城也是外国投资额居冠的州属,在2010年1月至2013年8月期间,创下全马最高外国投资额的记录,占全国总外来投资额20%,或197亿令吉。”

在支持制造业及旅游业持续成长同时,州政府也推动着共享服务领域的成长,发展价值33亿令吉的业务流程及科技工艺外包中心,创造数万个就业机会。上述外包中心涵盖峇六拜74英亩的土地、计划中峇央峇鲁业务流程外包中心7英亩土地(BPO Prime)及乔治市古迹区10万平方尺的创意动画区(CAT)。

“由于良好的管理,槟城才有持续的供水。但是,让槟城延续今天的福利、展望未来是基本需求。槟州供水机构会继续肩负管理供水的责任,尽一切努力避免配水的困境。

Contact: Syarifah Nasywa Syed Feisal Barakbah
Corporate Communications Unit
Tel: 04 2013 231 | Email : [email protected]

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